/biz/ - Business & Finance

>>21960271
basically what most retail does is they'll put their stop loss behind a market structure, like a pivot or really obvious support level. MM's will often use this to their advantage because they pay brokerages to look at the order flow and can see if there are a bunch of orders there, and if it is really obvious they will manipulate price down there to knock out all of the stop losses to get the liquidity they need before taking the price higher. happens all the time. happening on TSLA right now in fact, just knocked out the LoD crowd. the more obvious it is the more likely it is to happen, you'll notice the big volume bars when price breaks those areas because of it.

notice the volume spike and then bottoming tail into reversal as it broke LoD, classic stop loss run.